On December 01, 2021. Parton Company acquired Sundance Company by exchanging 30.000 shares of Parton's $5 par value Common Stock with a Fale value of $30 per share for all of the outstanding voting shares of Sundance Inits aralysis of the investee company, Parson valued all of Sundance's assets and abilities at an amount equiling their book values except for a building that is undervalued by $400,000 .. fair value book valuel, an unrecorded Ucense Agreement with a fair value of $200,000, and an urecorded Customer ist owned by Sundance with a fair value of $100,000. Any further descrepancy between the purchase price and the book value of Sundances Stockholders' Equity was attributed to goodwill Parson paid $35,000 to an investment bank for assisting in the arrangements and paid $28,000 in stock issuance costs for the acquisition of Sundance. Sundance would no longer exist as a legal entity after the acquisition The separate balance sheets for Parson and Sundance for the year ending December 31, 2021. Just prior to their combination, follow, Parson Sundance Cash $ 480,000 $ 200.000 Accounts Receivable 300,000 400,000 Inventory 520,000 500,000 Buildings 2.400.000 900.000 Total assets $ 3.200.000 $ 2.000.000 Accounts Payable $ (150.000) $ (100,000) Long-term Liabilities (460,000) (320,000) Common Stock (540,000) (100,000) Additional Paid in Capital (1,450,000 (580,000) Retained Earnings. Dec 31, 2021 11.100.0001 1900.0001 Total abilities and stockholders' 13.700.000 12.000.000 equity Note: Parentheses Indicate a credit balance Required: Of needed, provide supporting calculations to obtain credit) 1. (8 points) How much goodwill must be reported from the business combination 2. (12 point Prepare the journal entries to record the business combination and other related costs at the acquisition date 3. Sundance continued as a separate legal entity and became the subsidiary of Pacien after the acquisition, do the following A 15 points) Prepare the oumal entries made in Parson's books at the acquisition date B. (9 points) Without preparing a worksheet, prepare the consolidation entries made into the consolidation worksheet for the year ended on December 31, 2021 (points) Without preparing a worksheet, determine the consolidated totals of the following accounts as of December 31, 2021: Cash Building Additional Paid in Capital On December 01, 2021. Parton Company acquired Sundance Company by exchanging 30.000 shares of Parton's $5 par value Common Stock with a Fale value of $30 per share for all of the outstanding voting shares of Sundance Inits aralysis of the investee company, Parson valued all of Sundance's assets and abilities at an amount equiling their book values except for a building that is undervalued by $400,000 .. fair value book valuel, an unrecorded Ucense Agreement with a fair value of $200,000, and an urecorded Customer ist owned by Sundance with a fair value of $100,000. Any further descrepancy between the purchase price and the book value of Sundances Stockholders' Equity was attributed to goodwill Parson paid $35,000 to an investment bank for assisting in the arrangements and paid $28,000 in stock issuance costs for the acquisition of Sundance. Sundance would no longer exist as a legal entity after the acquisition The separate balance sheets for Parson and Sundance for the year ending December 31, 2021. Just prior to their combination, follow, Parson Sundance Cash $ 480,000 $ 200.000 Accounts Receivable 300,000 400,000 Inventory 520,000 500,000 Buildings 2.400.000 900.000 Total assets $ 3.200.000 $ 2.000.000 Accounts Payable $ (150.000) $ (100,000) Long-term Liabilities (460,000) (320,000) Common Stock (540,000) (100,000) Additional Paid in Capital (1,450,000 (580,000) Retained Earnings. Dec 31, 2021 11.100.0001 1900.0001 Total abilities and stockholders' 13.700.000 12.000.000 equity Note: Parentheses Indicate a credit balance Required: Of needed, provide supporting calculations to obtain credit) 1. (8 points) How much goodwill must be reported from the business combination 2. (12 point Prepare the journal entries to record the business combination and other related costs at the acquisition date 3. Sundance continued as a separate legal entity and became the subsidiary of Pacien after the acquisition, do the following A 15 points) Prepare the oumal entries made in Parson's books at the acquisition date B. (9 points) Without preparing a worksheet, prepare the consolidation entries made into the consolidation worksheet for the year ended on December 31, 2021 (points) Without preparing a worksheet, determine the consolidated totals of the following accounts as of December 31, 2021: Cash Building Additional Paid in Capital
